Energy Efficient Repairs Are Not Out of Reach

 

Financing Program

Features

#1 Rule in Real Estate is LOCATION!  LOCATION!  LOCATION!

Buy the worst house in the best neighborhood….

You can change the house, but you cannot change the location.

 

Turn any home (yes, even a fixer upper) into your Dream Home!

 

You’re probably saying “This is all well and good, but where am I going to get the financial resources to turn a fixer upper into “MY DREAM HOME”?

 

If you are you in the market to buy a new house, learn how you can transform your new home into the home of your dreams.  A home that is not only beautiful, but also more comfortable and healthier. See below how an expert in Green Real Estate can work with you to realize your dream home.

Learn about the various financing tools available to you.  Don’t leave money ($$$) on the table.  Take advantage of the government programs and utility rebates that will help offset the cost of your home purchase as well as your home improvements.

NOTE:  Most people do not realize that the second biggest expense next to owning a home is their utility bills.  Yes folks, that’s almost as much as a car payment, and for some people it’s more.

 

 

Are you:

A Conventional Buyer?

A FHA Buyer?

A First Time Homebuyer?

In Need of Down Payment Assistance?

 

Cal HFA Products (California Housing Finance Agency)

http://www.calhfa.ca.gov/homebuyer/programs/

Conventional Loan Programs

FIRST MORTGAGE PROGRAMS

Conventional Loans –

CalPLUS Conventional Loan Program 
The CalPLUS Conventional program is a first mortgage loan insured through private mortgage insurance on the conventional market. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for down payment assistance and/or closing costs.

 

CalHFA Conventional Loan Program 
The CalHFA Conventional program is a first mortgage loan insured through private mortgage insurance on the conventional market. The interest rate on the CalHFA Conventional is fixed throughout the 30-year term.

 

Government Insured Loans

CalPLUS FHA Loan Program 
The CalPLUS FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for down payment assistance and/or closing costs. First-time homebuyers can receive more down payment assistance through ZIP Extra.

 

CalHFA FHA Loan Program 
The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan is fully amortized for a 30-year term.

 

Cal-EEM + Grant Program 
The Cal-EEM + Grant program combines an FHA-insured Energy Efficient Mortgage first mortgage loan with an additional Cal-EEM Grant, making energy efficient improvements even easier. The interest rate on the Cal-EEM is fixed throughout the 30-year term.

 

DOWN PAYMENT ASSISTANCE PROGRAMS

The money you put “down” or the down payment on your home loan can be one of the largest hurdles for many first-time homebuyers. That’s why CalHFA offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan. CalHFA’s subordinate loans are “silent seconds”, meaning payments on this loan are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced or paid in full. This helps to keep your monthly mortgage payment affordable.

 

MyHome Assistance Program 
Offers a deferred-payment junior loan of an amount up to the lesser of five percent (5%) of the purchase price or appraised value to assist with down payment and/or closing costs.

 

Extra Credit Teacher Home Purchase Program (ECTP) 
Program for eligible teachers, administrators, classified employees and staff members working in high priority schools in California. Offers a deferred-payment junior loan of an amount not to exceed the greater of $7,500 or 3% of the sales price or in CalHFA-defined high cost areas an amount not to exceed the greater of $15,000 or 3% of the sales price. Assistance can be used for down payment.

 

FHA Products

203(k) Full Renovation Loan Program

203(k) Renovation Loan Program allows homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its repairs through a single mortgage or to finance the repairs of their existing home.

203(k) Renovation Loan Program fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the purchase and the repair of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

 

203K Streamline (Limited)

 

The 203K Streamline or otherwise known as FHA Limited 203(k) program is for less extensive repairs or improvements.  This program allows homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve or upgrade their home.  Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser.  Homeowners can make property repairs or improvements or prepare their home for sale.  Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.

This program can be combined with Energy Efficient Mortgage (EEM)

 

Energy Efficient Mortgage

Did you know that with an Energy Efficient Mortgage, you are pre-approved for an additional 5% on your home loan to make the necessary improvement that will reduce your utility bill?  Improvements such as a new energy efficient HVAC (heating & air conditioning) system, a new pool pump, a new water heater, new Energy Star appliances, etc.

 

You do not have to qualify for these additional dollars ($$$).

Example:

Home purchase price of $400,000, with an Energy Efficient Mortgage (EEM) you are automatically pre-approved for up to $20,000 to do energy efficient improvements (insulation, new water heater, Energy Star appliances, etc.) to your home.  When you combine your loan with 203(k) Streamline, you can qualify for up to $35,000 additional for other improvements (kitchen, bathroom, carpet, new paint, etc.).  This gives you a total of $55,000 to do your necessary upgrades.

 

Home Purchase Price:                                    $400,000

 

Energy Efficient Mortgage (EEM)              $20,000 (5% max – for energy efficient improvements ONLY)

203(k) Streamline:                                           $35,000 (Max – for remodeling projects w/NO foundation issue)

Total $$$ for improvements:                       $55,000

 

Total loan amount:                                          $455,000

 


 

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OTHER PARTNERSHIP & PROGRAM OPTIONS

Mortgage Credit Certificate Tax Credit Program (MCC)
A federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.

 

Cal EEM + Grant Program http://www.calhfa.ca.gov/homeownership/training/index.htm

Qualified First Time homebuyers:  Qualify for an additional 4% grant for a deeper energy efficient improvements!

How?  You can combine Cal EEM + Grant Program with an FHA-insured Energy Efficient (EEM) first mortgage to help you reduce your utility cost even more.

First Time Homebuyer:  For CalHFA purposes, a first-time homebuyer is defined as a borrower who has not had an ownership interest in any principal residence during the previous three years.

Re-Payment of Cal-EEM Grant:  If the borrower(s) occupy the home for three (3) years, the full amount of the grant is forgiven.  If the home owner sells or rents out the property in less than three (3) years, the grant must be repaid on a pro-rated basis.

 

Extra Credit Teacher Home Purchase Program (ECTP)

  • Are you a first time homebuyer?
  • Are you a teacher, administrator, classified employee or staff member who works in a County Community School, Continuation School or High Priority school in California?

 

If you answered “Yes” to the above questions (?), you may be eligible for a down payment assistance program thru CAL HFA ECTP Program.

 

The ECTP provides a deferred-payment junior loan for eligible teachers, administrators, classified employees and staff members working in county/continuation or high priority schools in California.

ECTP junior loans range from $7,500 to $15,000 depending on the area in which the home is being purchased, and can only be combined with an eligible CalHFA first mortgage loan. ECTP subordinate loans can only be used for down payment assistance.

 

CalHFA Subordinate Financing

This program may be layered with the following down payment and/or closing cost assistance options for first-time homebuyers only:

  • MyHome Assistance Program (MyHome)
  • May be used for closing cost and/or down payment assistance
  • Extra Credit Teacher Program (ECTP)
  • May be used for down payment assistance and/or closing cost

 

NOTE:

  • MyHome and Extra Credit Teacher Program (ECTP) may not be combined.
  • Can be layered (combined) with CalHFA Mortgage Credit Certificate Tax Credit Program (MCC Tax Credit Program) or other Mortgage Credit Certificate (MCC) programs for first-time homebuyers only.
  • In the case of conflicting guidelines, the lender must follow the more restrictive